Mr Lim Hng Kiang at the Opening Ceremony for Vopak's Banyan Terminal

SPEECH BY MINISTER FOR TRADE AND INDUSTRY, MR LIM HNG KIANG, AT THE OPENING CEREMONY FOR VOPAK’S BANYAN TERMINAL ON 12 APRIL 2006

His Excellency Mr. Chris Sanders,

Ambassador from the RoyalKingdom of the Netherlands to Singapore,

Mr. John Paul Broeders, Chairman, Royal Vopak,

Mr. Jack de Kreij, Member, Executive Board, Royal Vopak,

Mr. Paul Govaart, President, Vopak Asia Pte Ltd,

Ladies and Gentlemen,

Growth of Royal Vopak in Singapore

I am happy to be here today to open Royal Vopak’s fourth petroleum and chemicals terminal in Singapore. Royal Vopak is the global industry leader in third party chemicals and petroleum storage, with 73 terminals and a total storage capacity of more than 20 million cubic meters worldwide. With the opening of this new terminal, Royal Vopak will continue to be the largest independent petrochemical storage provider in Singapore.

I am heartened by the impressive growth of Royal Vopak’s investment in Singapore over the last 24 years. I am sure this is due in no small part to the company’s forward thinking and confidence in Singapore.

Singapore is the Leading Asian Hub for Chemical Logistics and Transshipment

The Chemicals industry, which includes the petroleum, the petrochemicals and the specialty chemicals industries, is an important contributor to Singapore’s economy. The Chemicals industry accounted for more than 31%, or $67.3 billion, of Singapore’s manufacturing output in 2005. The industry is the second largest contributor to our manufacturing output, after our Electronics industry.

The continued strong demand for chemical products in Asia emphasizes the importance of good supply chain management for the industry. This involves the ability to move the chemicals quickly and efficiently without compromising safety standards. The fact that Singapore sits at the center of the key oil trading routes between the Middle East and the growing Asian markets, coupled with our excellent connectivity and supporting infrastructure, makes us a natural location of choice for chemical supply chain management.

As a result, there has been strong growth in the chemical transshipments through Singapore, from 1,500 vessels in the year 2000 to more than 3,200 vessels in 2004. We are now one of the top 3 refining centers in the world, and the third largest global oil trading hub and bunker port, with more than $260 billion in physical oil trade and $298 billion in derivative trade in 2004.

Development of the Banyan Log spark and the Jurong Rock Caverns

Going forward, we expect to see continued growth in the Chemicals sector. In order to maintain our leadership positions, we need to have a good supply chain management infrastructure in place. It is therefore timely that Royal Vopak has decided to expand its operations with the opening of its fourth terminal here.

To support the growth in the Chemicals industry, Banyan Log spark will become the hub for integrated chemical logistics services on Jurong Island. Royal Vopak’s new terminal here is a major project contributing to this objective. The terminal is ideally located to serve the logistics needs of the chemical manufacturing projects at the western side of Jurong Island. It will also serve companies using Singapore as a distribution point to the rest of Asia.

As you may be aware, the Government, through its agencies JTC Corporation and the Economic Development Board, has been evaluating the option of building the Jurong Rock Caverns, an underground storage facility to further enhance our chemical logistics infrastructure. Today, I am pleased to announce that we will proceed with the project and work will begin later this year. The first caverns are expected to be ready in 2009. The caverns have the possibility of integration with aboveground storage, and will allow for optimization of the overall storage capacity on Jurong Island. This will result in land savings and offer benefits of enhanced safety and security. More importantly, it will help boost Singapore’s position as a leading chemicals hub.

Going forward, Singapore will continue to work hand in hand with both service providers and manufacturers to ensure that potential synergies are fully exploited here on Jurong Island. This will allow both the chemicals and logistics industries to remain vibrant and continue their strong growth.

Conclusion

Before I end off, I would like to congratulate Royal Vopak on the opening of your new terminal. It is a symbol of Royal Vopak’s growth and success in Singapore as well as a clear sign of your long term commitment here.

I would like to assure you that we value our partnership with Vopak, and I wish you every success for the future.